Exhibit (d)(xx) CHARLES SCHWAB INVESTMENT MANAGEMENT, INC. June 20, 2003 Randall W. Merk, President and Chief Executive Officer - Schwab Capital Trust 101 Montgomery Street San Francisco, CA 94104 Re: Schwab Focus Funds Dear Mr. Merk: This letter will...

                                                                 Exhibit (d)(xx)

                   XXXXXXX XXXXXX INVESTMENT MANAGEMENT, INC.

June 20, 2003

Xxxxxxx X. Xxxx,
President and Chief Executive Officer - Schwab Capital Trust
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000

Re: Schwab Focus Funds

Dear Xx. Xxxx:

This letter will confirm our agreement to limit total fund operating expenses to
110 basis points for each of the Schwab Focus Funds through February 28, 2005,
as described in the registration statement of the funds filed with the
Securities and Exchange Commission.

Sincerely,

/s/ Xxxxxxx X. Xxxx                            /s/ Xxxxx Xxxxxxxxx
-----------------------------                  -----------------------------

Xxxxxxx X. Xxxx,                                      Xxxxx Xxxxxxxxx
Senior Vice President                                 Vice President,
and Chief Investment Xxxxxxx,                         Xxxxxxx Xxxxxx & Co., Inc.
Xxxxxxx Xxxxxx Investment Management, Inc.